Time Is Running Out: Malta Yacht Registration With 5% VAT

Under Regulation 384 of 2003 of the Value Added Tax Act of Malta it is possible to register yachts under the Maltese flag with the added bonus of paying VAT at only 5%. Yacht owners who register their yachts in Malta prior to this date and pay VAT at 5% to the Malta government will be considered to be VAT-paid on Malta’s accession to the E.U. on May 1, 2004.

The offer is valid until 31st March 2004 and therefore interested yacht owners must take immediate action to have their yacht registered in Malta and have it VAT-paid before that date.

There are two procedures to choose from, depending on whether the yacht can be physically brought to Malta before the time limit of 31 March 2004.

If the yacht can be brought into Malta before 31 March 2004, a Maltese shipping company is created and the yacht is registered under the Malta flag. The company submits an application to the Customs Department together with sales invoice from the present owner to the Maltese shipping company, bill of